VIV Earnings Prediction
The chart below shows how VIV performed 10 days before and after its earnings report, based on data from the past quarters. Typically, VIV sees a +1.21% change in stock price 10 days leading up to the earnings, and a +1.46% change 10 days following the report. On the earnings day itself, the stock moves by -0.23%. This data can give you a slight idea of what to expect for the next quarter's release.
VIV Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.53B
-5.74%
-3.49%
Gross Margin
44.47%
3.04%
0.20%
Operating Margin
16.39%
13.19%
3.67%
Net Margin
11.88%
5.51%
32.00%
EPS
0.18
0.00%
28.57%
No Data Available
VIV Earnings Analysis
Telefonica Brasil, S.A. American Depositary Shares (Each representing One Common Share) Corporation (VIV.N) Earnings Conference Call
Positive
Postpaid Customer Growth: 1. Customer Growth in Postpaid: Vivo's postpaid customer base increased by 7.6% year-over-year, demonstrating strong demand for mobile services.
Fiber Connectivity Increase: 2. Significant Fiber Expansion: The number of homes connected with FTTH grew by 12.5% this quarter, reaching 6.7 million users and contributing to a robust fiber segment.
Mobile Service Revenue Surge: 3. Strong Revenue Growth: Total revenues rose by 7.1% year-over-year, driven primarily by mobile service revenues which grew by 8.8%.
Strong Free Cash Flow: 4. Robust Free Cash Flow Generation: Vivo generated BRL7.1 billion in free cash flow during the period, reflecting a healthy financial position and a free cash flow yield of 8.4%.
EBITDA Margin Improvement: 5. Increased EBITDA Margin: The EBITDA margin improved to 42.4%, with EBITDA itself growing by 7.4% year-over-year, indicating effective cost management and operational efficiency.
Negative
Rising Operating Expenses: 1. Increased Operating Costs: Total operating costs grew by 6.8% year-over-year, driven by higher commercial and infrastructure costs associated with a growing customer base, impacting overall profitability.
Declining Fixed Revenue Challenges: 2. Declining Legacy Fixed Revenues: Legacy fixed revenues continue to decline, with only a slight deceleration noted, indicating ongoing challenges in this segment as it represents a diminishing portion of total revenue.
Lease Expense Increase: 3. Lease Expenses Volatility: Lease expenses increased significantly in Q3, with cash payments amounting to BRL1.3 billion, higher than the previous year, indicating potential future cash flow pressures.
Pricing Strategy Challenges: 4. Competitive Pricing Pressure: The entry of a new bank offering lower-priced plans poses a risk to Vivo's pricing strategy, particularly in the price-sensitive prepaid segment, which could impact future revenue growth.
CapEx Stability Challenges: 5. CapEx Stability Concerns: While CapEx remained stable at BRL6.7 billion, the company faces challenges in maintaining this level of investment in light of ongoing competitive pressures and the need for network expansion.
VIV FAQs
How does VIV typically perform around its earnings report dates?
Is Telefônica Brasil S.A. (VIV) Q3 2024 Earnings Call Summary positive or negative?
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VIV Earning Call Sentiment
Telefônica Brasil S.A. (VIV) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
VIV.N
0.55%Positive
The earnings call summary and Q&A reflect strong financial performance, with revenue and EBITDA growth, robust cash flow, and improved margins. Shareholder returns through buybacks and capital reduction are favorable. While there are competitive and regulatory challenges, management's strategic responses, particularly in mobile service growth and digital services, are optimistic. The Q&A indicates confidence in sustaining growth, despite some uncertainties. Overall, the company's solid financials and strategic initiatives suggest a positive stock price movement in the near term.
